Sydney is getting some new office supplies.

According to CBRE, a slew of new office supply is on the way for Sydney’s commercial market, bringing a host of prime grade options to the country’s largest CBD. for sale in qatar

Sydney Office: The next supply cycle…have no doubt, a new CBRE Viewpoint, shows how the New South Wales capital will face record vacancy lows for the next two years as it awaits the next tranche of supply.

Although competition for space will increase between 2018 and 2019, new supply will provide more opportunities in not just the Sydney CBD but across metropolitan markets, according to CBRE Research Manager Alexander Tan.

“Beyond 2020, the next supply cycle will provide more options for office tenants across Sydney,” Mr. Tan said, “with heavy competition planned for those looking to secure tenants in major projects like Wynyard Place, Quay Quarter Tower, and 100 Mount Street and 1 Denison Street in North Sydney.”
Parramatta Square stages three and four, Australian Technology Park in Eveleigh, 11 Talavera Road, and Macquarie University in Macquarie Park are among the projects set to be completed in the next three years.

Jenine Cranston, Senior Director, Advisory & Transaction Services — Office Leasing at CBRE, said that due to high tenant demand, the Sydney CBD will remain competitive.

“While competition from other markets may provide some competition, the Sydney CBD has long been a magnet for both local and international brands. It’s the kind of place where companies want to be “Ms. Cranston expressed herself.

“Attracting and retaining talent is given much more weight than in the past, which means tenants are more likely to consider choices holistically rather than solely on the basis of cost. It is clear that HR has grown in strength, and the days of the CFO focusing solely on costs have passed.”

Due to the tight vacancy profile across Sydney’s office markets in the coming years, Mr. Tan believes the possibility of a supply glut between 2020 and 2021 is remote.
“The supply pipeline will be subdued from 2017 to 2019, according to our estimates, and net absorption will meet a similar low growth profile,” Mr. Tan said.

“After 2019, however, new supply will average 1.2 percent of total stock (the long-term average), well below previous supply peaks of 1.5 percent in 2008–2009 and 1.7 percent in 1999–2001.”

Using the autoregressive integrated moving average (ARIMA) model, a time series forecasting technique, the study highlights the likelihood of an outlier rise in net absorption over 2020–2021, when new supply is due.

“As a result of the ‘upside surprise,’ overall vacancy across Sydney’s office markets may be closer to 3%, rather than our current predictions of 6% to 7%,” Mr. Tan said.